Sensex sheds 625pts on profit-taking in blue chips; PSBs, realty buck trend

Among the sectoral market, shares of auto, FMCG, and IT companies were under pressure, while public sector banks, pharma, and realty bucked the trend and logged gains

Stock market closing bell, Tuesday, May 27, 2025: Profit booking among select blue-chip stocks at higher levels dragged the benchmark equity indices lower on Tuesday. Broader markets, however, remained resilient, with mid- and small-cap indices posting marginal gains. Among the sectoral front, shares of auto, FMCG, and IT companies were under pressure, while public sector banks, pharma, and realty bucked the trend and logged gains.  The BSE Sensex, though it recovered nearly 430 points from the day's low, still ended in the red at 81,551.63, down 624.82 points or 0.76 per cent from its previous close. The NSE Nifty50 closed lower by 174.95 points, or 0.70 per cent, to settle at 24,826.20. The 50-share index traded in the range of 25,062.90 to 24,704.10 on Tuesday. 

 

 

UltraTech Cement, JSW Steel, ITC, Tata Motors, and Grasim were among the top laggards in the Nifty50, declining by up to 2.28 per cent. On the other hand, Jio Financial, IndusInd Bank, Trent, Adani Ports, and Sun Pharma were among the top gainers, rising by up to 3.87 per cent on Tuesday.

 

The market breadth turned negative, with 1,462 out of 2,955 traded stocks on the NSE ending in the red, while 1,412 closed higher and 81 remained unchanged. Meanwhile, a total of 101 stocks hit their upper circuit on the NSE, while 51 touched their lower circuit limits. At the close, the market capitalisation of NSE-listed companies stood at $5.18 trillion.  That apart, shares of Boran Weaves, which made their D-Street debut today, climbed 5 per cent from the listing price and 18.13 per cent from the IPO issue price to get locked on the upper circuit on the bourses.

SMIDs show resilience

The broader markets, however, showed resilience, with the Nifty Midcap100 and Nifty Smallcap100 indices settling higher by 0.15 per cent and 0.10 per cent, respectively. ITI (9.99 per cent), IFCI (4.82 per cent), Garden Reach Shipbuilders (3.51 per cent), Supreme Industries (3.69 per cent), and Container Corporation of India (3.11 per cent) were among the top gainers in the space.

 

PSBs, pharma, realty buck trend

Barring Nifty PSU Bank, Pharma, and Realty indices, all the other sectoral indices on the NSE ended in red. Among them, Nifty FMCG, IT, and Auto were the top laggards, ending down by 0.88 per cent, 0.75 per cent, and 0.70 per cent respectively. Meanwhile, Nifty PSU Bank, Realty, and Pharma indices managed to eke out gains of 0.26 per cent, 0.24 per cent, and 0.11 per cent respectively, on Tuesday.

Profit booking pauses rally

The analysts believe that the market is witnessing non-directional activity; perhaps traders are waiting for an either-side breakout. The domestic market, Vinod Nair, head of research, Geojit Investments, said, witnessed volatility and snapped a two-day rally, as investors opted for profit booking driven by valuation concerns and weakness across Asian markets.  "The benchmark index once again failed to decisively breach the 25k resistance level, reflecting the absence of positive triggers. Large-cap stocks underperformed, weighed down by subdued FII participation and lacklustre earnings from blue-chip companies. Conversely, mid- and small-cap segments remained relatively resilient, supported by better than estimated Q4 earnings and moderation in premium valuation," said Nair.    "We are currently witnessing a tug of war between bulls and bears amid mixed global cues," said Ajit Mishra, SVP, Research, Religare Broking. However, favorable domestic factors such as a good monsoon and strong macroeconomic data, Mishra believes, are helping maintain a positive undertone.  

"We continue to maintain a positive outlook on the market. However, sustained strength in the banking and financial sectors is crucial for the Nifty to overcome the 25,200 hurdle and regain upward momentum. In the meantime, traders should adopt a 'buy on dips' strategy with a strong emphasis on stock selection," said Mishra. 

Technical view

From the technical perspective, analysts believe that 24,700 would be the key support zone for traders, while 25,000 would act as a crucial resistance zone for the bulls.

 

“As long as the market trades within this range, a range-bound texture is likely to persist. On the higher side, a successful breach of 25,000 could push the market up to 25,100–25,250,” said Shrikant Chouhan, Head of Equity Research, Kotak Securities. On the downside, a fall below 24,700, Chouhan believes, could retest levels of 24,500–24,450.

 

Mandar Bhojane, equity research analyst at Choice Broking, on the other hand, believes that a sustained close above 25,200 could trigger fresh buying interest, potentially pushing the index towards 25,600 and 25,800.

 

“Until a decisive move occurs, range-bound action is likely to continue, and traders are advised to remain cautious and watch for a confirmed breakout,” said Bhojane.